The final business case was approved in November 2005. In approving the business case the government:
• ratified its earlier decision to select the 'new west variant' option as the preferred site option
• noted the proposed gross floor space and site boundaries for the project and the commitment provided by the RCH board to cap the gross area in the new hospital at 96,000 square metres, provided there were no material changes to the service plan for the hospital
• approved the project to be delivered under a Partnerships Victoria model, subject to private sector bids satisfying value for money criteria
• approved funding for the project and noted that $90 million would be received in offset funding from RCH towards the cost of the redevelopment via:
• $50 million from the RCH, on the basis of a qualified commitment given by the RCH board to raise the funds with any shortfall to be possibly underwritten by other fundraising by the RCH Foundation
• $30 million from RCH borrowings, secured against future RCH car park revenues
• $10 million from RCH asset sales after the commissioning of the new hospital
• approved funding of project management and transaction costs of $24 million made up consultants fees, DHS project team costs and RCH redevelopment team costs
• delegated to the Treasurer and the Minister for Health responsibility for conducting the Partnerships Victoria procurement process including approving of the expression of interest, project brief, final public sector comparator, preferred tenderer and the project agreement.